---

Microphonics Announces Completion of Audit

16 August 2000

Microphonics Announces Completion of Audit

    NASHVILLE, Tenn. - Microphonics (OTCBB:MRPS) is proud to announce that as of August 14, 2000, the firm of Kraft Bros, Esstman, Patton & Harrell, PLLC Certified Public Accounts has completed the audit of the 1998 and 1999 financials.

    The audited financial information will be available to our shareholders on our web sight at www.Microphonics.com on or about August 21, 2000.

    Microphonics CEO Jimmy Gayle states, "This day has been a long time coming and we appreciate the patience and support of our many shareholders. We have experienced many ups and downs in the last two years. As our shareholders are aware, we did not receive the funding we expected from the sale of our securities and so we have not been able to fund sales and marketing programs at the level necessary to achieve desired revenue levels. We also paid many non-recurring expenses during the last two years involving legal and accounting fees. We intend to focus our efforts during the remainder of this year on obtaining additional financing, strengthening our corporate infrastructure, and improving our sales and marketing efforts. Our plan has always been to make our shareholders proud of the investment they made in Microphonics and we now hope that their faith in us will be justified."